GM and welcome to The Crypto Nutshell! 🫶 🥜 

The crypto newsletter that’s more exciting than realising you're king of a hidden technological utopia in Africa after your father’s demise... 🐾👑

Today, we’ll discuss:

• Recapping the last 24 hours in the world of crypto 🌏

• Why great fortunes come from embracing new technologies 🧞‍♂️

• The inactive BTC supply just hit a new high 📈

• And more…

MARKET WATCH ⚖️

BTC Dominance is currently at 49.81% and the current crypto market cap is $1.20T ▼0.07%

Biggest Winners of The Day 🤑

• Chainlink (LINK) ▲19.88%

• Polkadot (DOT) ▲6.50%

• Toncoin (TON) ▲5.88%

Biggest Losers of The Day 😭

• Solana (SOL) ▼2.65%

• XRP (XRP) ▼2.26%

• Ethereum (ETH) ▼0.64%

Only the top 20 coins measured by market cap feature in this section

🚨The UK government has rejected a proposal from the House of Commons🚨Treasury Committee to treat crypto like gambling.

Andrew Griffith (Economic Secretary to the Treasury) said that the treasury firmly disagrees with the “recommendation to regulate retail trading and investment activity in unbacked crypto assets as gambling rather than as a financial service.”

Back we go to waiting for what regulations the UK government cooks up 👩‍🍳

Will the UK become a global crypto hub? 👀

All price data as of 7:50am ET

EXPERT OF THE DAY - MARK YUSKO 💰

Hedge fund manager Mark Yusko in his latest interview had one key point.

Great fortunes come from embracing new technologies.

The founder of Morgan Creek Capital pointed out a glaring reason as to why Bitcoin is inevitable and destined to move upwards. 

Quick Economics 101 for those of you that slept through all your early Econ lectures like us 😴 

Back in the 1950’s a guy called Harry Markowitz discovered something incredible.

This incredible discovery went on to turn into Modern Portfolio Theory and it now governs the way every big money manger and asset management firm decides to allocate their capital.

The discovery?

If you combine assets that are uncorrelated and are risky (aka. are volatile) you will maximise your returns whilst actually DECREASING risk. 🤔

Okay I can hear you snoring already…

How does this all relate to Bitcoin?

Bitcoin is correlated with NOTHING.

Although Bitcoin has moved somewhat in tandem with tech stocks and the NASDAQ over the last 2-3 years, this is an anomaly. (most likely caused by the unprecedented money printing)

Bitcoin has a negative correlation to precious metals such as gold.

Bitcoin has a negative correlation to the US dollar and other strong fiat currencies.

Therefore it’s a NO-BRAINER for institutions, hedge funds, family offices and investors to add Bitcoin to their portfolios.

At even just a teeny tiny, 1% - 5% allocation, these big money mangers can INCREASE their returns whilst DECREASING their risk.

So that, in a nutshell, is why Mark Yusko believes Bitcoin is destined to be bought up by the big boys. 

Also, interesting side note:

This key understanding is also a foundational argument made by ARK Invest and Cathie Wood as to why they believe Bitcoin could go to over $600,000 by 2027.

BTW - Yusko finished the interview by stating that his fair-value Bitcoin pricing model puts Bitcoin at over $100,000 by sometime in 2024.

Let’s hope he’s on the money.🥂😉 

Nutty’s Takeaway: If you understand portfolio theory, the logical move is to allocate at least some of your portfolio to Bitcoin. We think the big institutions like BlackRock, Fidelity & Charles Schwab have come to this conclusion and now are all piling into ETF applications so they can profit off the trade.

IF (when) a spot Bitcoin ETF gets approved, that really opens the floodgates for all the institutional money to allocate capital towards BTC whilst staying within their regulatory guidelines.

ON CHAIN DATA DIVE 📊

Here’s a crazy stat to start your day.

55% of Bitcoin’s supply hasn’t moved in at least 2 years 🤯

Lets jump right into the Percent of Bitcoin Supply Last Active 2+ years ago. Things to know about this chart:

• “Active” means the BTC has been transferred to another address recently

• This metric rises as longer-term investors accumulate coins

• This metric declines as longer-term investors spend or distribute their coins

• Lost coins will also increase this metric (loss of access to private keys) 😥

Investors who have held bitcoin for 2+ years first purchased during the 2021 bull run and have held those coins with diamond hands through some wild events:

• Bitcoin hit an all time high of $68,789.63

• The price of BTC then dropped 75% from its all time high 😱

• The collapse of FTX and Luna

• The bleak outlook on the global economy with rising interest rates etc.

It’s safe to say these Hodlers survived the FUD gauntlet 🏅

So what’s this mean?

This chart really shows the strength of the Bitcoin community and how diamond hands isn’t just another meme. 💎🙌

Nutty’s Takeaway: As this percentage continues to increase (it’s highly likely that it will…don’t forget about BlackRock) the price is more than likely going to rise with it. The BTC community is as strong as ever and this just proves that. With the ETF approvals and halving set for next year, Bitcoin is primed to explode upwards. 🚀

CRACKING CRYPTO 🥜

TRIVIA TIME ✍️

When was the Bitcoin Whitepaper published?

• A) 2009

• B) 2007

• C) 2011

• D) 2008

Find out the answer at the bottom of this newsletter 😀

MEME CORNER 😂

Because what would the crypto world be without its share of memes?

Trivia Answer: D) 2008 🎉

The Bitcoin Whitepaper was originally published on the 31st of October, 2008 by Satoshi Nakamoto.

NUTCASE REVIEW OF THE DAY 🔍

DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.